Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of October 26 it has cut its scrap purchase prices by RMB 50/mt ($7.8/mt), signaling its bearish sentiments as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,790/mt ($593/mt) delivered, including 13 percent VAT.
Previously, on October 22, Shagang Group had trimmed its heavy scrap purchase prices by RMB 80/mt ($12.5/mt).
Recently, steel prices in China have declined, and so Chinese steel mills have been eager to lower purchase prices for scrap, aiming to reduce their production costs.